Rights statement: This is the peer reviewed version of the following article: Johnes, G, Tsionas, MG. A regression discontinuity stochastic frontier model with an application to educational attainment. Stat. 2019; 8:e242. https://doi.org/10.1002/sta4.242 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1002/sta4.242 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - A Regression Discontinuity Stochastic Frontier Model with an Application to Educational Attainment
AU - Johnes, Geraint
AU - Tsionas, Mike
N1 - This is the peer reviewed version of the following article: Johnes, G, Tsionas, MG. A regression discontinuity stochastic frontier model with an application to educational attainment. Stat. 2019; 8:e242. https://doi.org/10.1002/sta4.242 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1002/sta4.242 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
PY - 2019/9/1
Y1 - 2019/9/1
N2 - We extend the regression discontinuity design model to the case in which the line of best fit is replaced by a stochastic frontier. The method allows causality issues to be examined in a context where the performance measure is subject to inefficiency, and where, in addition to the relationship between dependent and explanatory variables, there may be a discontinuity in the inefficiency measure at the break. In the tradition of Battese and Coelli (1995), the inefficiency scores are modelled as part of the system but we follow a novel non-parametric approach. We illustrate the method with an application to data from Texas on class size and pupil performance, exploiting a Maimonides rule discontinuity. We find that class size affects performance in the expected direction, but that there is a corresponding effect in the opposite direction on efficiency. This may contribute to the difficulty experienced by authors of earlier studies in identifying a class size effect.
AB - We extend the regression discontinuity design model to the case in which the line of best fit is replaced by a stochastic frontier. The method allows causality issues to be examined in a context where the performance measure is subject to inefficiency, and where, in addition to the relationship between dependent and explanatory variables, there may be a discontinuity in the inefficiency measure at the break. In the tradition of Battese and Coelli (1995), the inefficiency scores are modelled as part of the system but we follow a novel non-parametric approach. We illustrate the method with an application to data from Texas on class size and pupil performance, exploiting a Maimonides rule discontinuity. We find that class size affects performance in the expected direction, but that there is a corresponding effect in the opposite direction on efficiency. This may contribute to the difficulty experienced by authors of earlier studies in identifying a class size effect.
KW - education
KW - regression discontinuity
KW - STOCHASTIC FRONTIER
U2 - 10.1002/sta4.242
DO - 10.1002/sta4.242
M3 - Journal article
VL - 8
JO - Stat
JF - Stat
SN - 2049-1573
IS - 1
M1 - e242
ER -